Three Basic Factors That Determine Which Sources of Short-Term Financing

question 141

True/False

Three basic factors that determine which sources of short-term financing a firm uses are the effective cost of financing,the availability of credit,and the influence of the use of a particular credit source on the cost and availability of other sources of financing.

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Definitions:

Suspected of Fraud

Being under suspicion for intentional deception to secure unfair or unlawful gain.

NSF

An abbreviation for "Non-Sufficient Funds," indicating that a bank account does not have enough money to cover a check or withdrawal.

Bank Statement

A bank statement is a summary of financial transactions that occurred at a banking institution over a specific period of time.

Cash Account

A ledger that tracks all cash receipts and disbursements.